Yahoo Finance Giffgaff’s new offerings help sales edge towards £600m
Giffgaff saw its sales edge closer to the £600m mark as the budget provider invested in new products during 2023, according to new documents.
The brand, which is ultimately owned by Virgin Media O2, has reported a revenue of £574.9m for its latest financial year, up from £559m.
However, the results filed with Companies House also show that its pre-tax profit dipped from £66.6m to £58.1m over the same period.
Giffgaff said that the fall in its pre-tax profit was “mainly due to higher cost of sales and administrative expenses as 2023 was a period of investment into new product offerings”.
During the year the average number of people who work on the brand, seconded from its parent company, increased from 185 to 234.
Giffgaff was founded in 2009 by Gav Thompson, a former marketing executive for Telefónica UK.
Tough times for Giffgaff owner Virgin Media O2
In May this year, Virgin Media O2 has said it had experienced lower customer activity and a decline in handset revenue in the first quarter of 2024.
The telecoms company reported that its total fixed customer base fell by 2,000 customers to 5.8 million in the first three months of the year due to a slowdown in customer activity in the fixed market.
It added that it also lost a small number of its total mobile customers, both contract and prepaid, which dropped to 23.5 million from 23.9 million in the first quarter of 2023. The telco added 5,300 broadband connections though.
Total revenue decreased marginally by 0.5 per cent year on year to £2.58bn, which VMO2 said was mainly driven by handset revenue decline that offset growth in mobile and fixed line service revenue.
Adjusted EBITDA dropped 1.4 per cent year on year to £935m in the first quarter.
